Travel Guide To Reykjavik

No country has produced more Miss Worlds (three) nor more conquerors of Everest (four). None so small can boast a Nobel laureate for literature, and no other country can boast the oldest parliament in existence. So, although Reykjavik essentially remains a quaint small town clinging to one corner of a largely uninhabitable island in the middle of nowhere, the skyline is now dominated by dramatic structures that trumpet its transformation from a down-at-heel, hick backwater into a very hip capital - albeit one that lingers on the brink of bankruptcy after the economic crash of 2008, which somehow has made Reykjavik more popular than ever.

Where to stay in Reykjavik

101 HOTEL

Hverfisgata 10, Reykjavik (00 354 580 0101; www.101hotel.is). 101 Hotel is a boutique hotel that scores highly on location and cool. Have a drink in the bar to sample the buzzy atmosphere, but don't bother eating there: the district is packed with restaurants. £££

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HOTEL BORG

Posthusstraeti 11, Reykjavik (00 354 551 1440; www.hotelborg.is). Hotel Borg in Reykjavik was once the vortex of the city's social life, and the location is excellent, on a grassy square right beside Reykjavik's cathedral and the Icelandic parliament. Built in 1930 in the highly fashionable Art Deco style, Borg was the dream project of champion wrestler Johannes Josepsson. This is a Scandinavian take on Art Deco, with muted colour schemes and minimalist restraint. Read more about Hotel Borg in our story on Art Deco hotels. £££

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Where to eat out in Reykjavik

CAFES

B5

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Bankastræti 5, Reykjavik (00 354 552 9600). B5 has a (possibly ironic) disco-ball hanging from the ceiling - about the only item in the place that isn't taupe and made of leather. Relax in the deepest seats ever and enjoy an excellent hot chocolate, just what you need after you've been trawling the shops.

KAFFI SOLON

Bankastræti 7a, Reykjavik (00 354 562 3232; www.solon.is). Buzzy, stylish Kaffi Sólon will take you through the day, from brunch to the early hours (hence the sound system in the corner).

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SÆGREIFINN

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Geirsgata 8, Reykjavik (00 354 553 1500; www.saegreifinn.is). For a purely Icelandic experience, have lunch at what can only be described as a shack down at the old port. Sægreifinn specialises in lobster soup and fish kebabs. The soup, made to a secret recipe using a sort of local crayfish, is sensational. You can also try a brochette of very fresh scallops or, if you are feeling brave, whale meat. (Whale-watching and whale-catching ships sit incongruously side by side here.)

GRAI KOTTURINN

Hverfisgata 16a, Reykjavik (00 354 551 1544). 'The Grey Cat' is a cosy, dimly lit, book-lined café in an old townhouse. It only starts filling up with the breakfast crowd after 10am or so. Sit and read the Reykjavik Grapevine, the lively, English-language paper with entertainment listings, while you eat eggs, pancakes or bagels and drink good coffee (Icelanders take the latter very seriously).

What to see in Reykjavik

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Reykjavik has a wealth of public and private art spaces. Check the Reykjavik Grapevine (www.grapevine.is) for details of exhibitions.

MUSEUMS

NATIONAL MUSEUM OF ICELAND

Sudurgata 41, Reykjavik (00 354 530 2200; www.natmus.is). The National Museum of Iceland has a lively and imaginative permanent exhibition, 'Making of a Nation', which traces the country's history from the first settlement to the present.

THE CULTURE HOUSE

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Hverfisgata 15, Reykjavik (00 354 545 1400; www.thjodmenning.is). In the 101 district is Þjóðmenning ('The Culture House'), a magical showcase for some of the splendour of Iceland's ancient past - sagas, Edda poems and other manuscripts - displayed in a series of dimly lit rooms.

Things to do in Reykjavik

THERMAL BATHS The unique culture surrounding the hot, bubbling, pure waters of Iceland is worth visiting. The website www.visitreykjavik.is provides a handy guide to Icelandic bath etiquette and lists 16 thermal baths in Reykjavik alone. BLUE LAGOON 240 Grindavík, Reykjavik (00 354 420 8800; www.bluelagoon.com). The tourists' favourite is the recently spruced-up Blue Lagoon, best visited on the way to or from the airport. The Blue Lagoon featured in the Spa Awards 2009 LAUGARDALSLAUG Sundlaugarvegur, Reykjavik (00 354 411 5100). Laugardalslaug has the most extensive facilities, and the locals say it's the best.

Where to shop in Reykjavik

Shopping malls on the outskirts of the city have many of the chain stores familiar to the UK visitor; there are also plenty of shops selling cuddly toy puffins. For cutting-edge style - jewellery, homewear, new and vintage clothes - head for the main street, Laugavegur (which turns into Bankastræti).

66º NORTH

Bakastræti 5, Reykjavik (www.66north.com). Local company 66º North sells Icelandic outerwear, including 'animal-friendly' (or acrylic, to you and me) fleece clothing.

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Sudurgata 41, Reykjavik (00 354 530 2200; www.natmus.is). The shop in the National Museum of Iceland (see What to See) is well worth a visit, for 'Dress-Up Viking Warrior' fridge magnets and exquisite hand-embroidered mittens and Icelandic knitwear.

The best things to do near Reykjavik

There are plenty of adventures to be found in Iceland:

FISHING

Whether you are an experienced fisherman or a novice, the excitement of catching a fish will make sea angling in the cold waters off Iceland a rewarding activity. The most commonly caught fish on tours are cod, haddock, pollock and catfish, though if you're lucky you might land a giant halibut. All equipment is provided and the guides will help you reel in your catch. Regent Holidays (0845 277 3381; www.regent-iceland.com) organises three-hour sea-angling tours from Reykjavik.

GLACIER HIKING

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Unsurprisingly, glaciers are a common feature of the country and Activities Abroad (01670 789991; www.activitiesaboard.com) offers hiking expeditions on the Sólheimajökull glacier in the south-west of Iceland. There's an ice wall on the glacier where you can try your hand at ice climbing, using axes and crampons.

HIKING

There are numerious treks that explore some of Iceland's most impressive landscapes, from the rugged coast to dramatic volcanic highlands. Exodus (0845 863 9600; www.exodus.co.uk) offers a week-long Iceland Volcano Hike, which passes through the southern region of Fjallabak. The route follows the Eldgjá volcanic fissure between Vatnajökull and Mýrdalsjökull icecaps, past craters, lava flows, lakes and canyons.

MIDNIGHT GOLF

For a surreal golfing experience, head to Akureyri Golf Club in the north of the island when the Arctic Open - a 36-hole international event - takes place. It is the only tournament in which play continues well after midnight: made possible by the fact that, in June and July, Iceland enjoys 24 hours of daylight every year. For more information visit www.arcticopen.is.

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RIDING

Saddle up for a trek across Iceland's epic landscape and discover a new wild west from the back of the pony-sized Icelandic horses. 'Geysir and Gluffoss Special' is one of several riding holidays arranged by Discover The World (01737 218800; www.discover-the-world.co.uk). It lasts for five nights. To protect livestock from outside diseases, you cannot take riding equipment into Iceland, including boots and half-chaps, unless it has been sterilised, with a vet's certificate to prove it. to get round this you could buy a new pair of wellingtons for the trip which will be perfectly practical for riding through rivers.

RIVER RAFTING

Southern Iceland's rivers provide a thrilling way to explore the landscape; river-rafting tours, grades 2 to 3, are available for both experienced rafters and beginners. Discover The World (01737 218800; www.discover-the-world.co.uk) has a three-hour tour and a five-and-a-half-hour tour.

WALE-WATCHING

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Whales favour the cold waters of the North Atlantic surrounding Iceland, making the whale-watching ports great for spotting minke whales and occasionally humpback and orca, as well as white-beaked dolphins and harbour porpoises. Scantours (020 7554 3530; www.scantours.co.uk) organises a three-hour tour that leaves from Reykjavik harbour. You may find puffins, fulmars and gannets endeavouring to overtake your boat.

How to get to Reykjavik

AIRLINES FROM THE UK

Icelandair (0870 787 4020; www.icelandair.co.uk) and Iceland Express (01279 665220; www.icelandexpress.com) both fly to Keflavik, from which there is a cheap bus service that ferries passengers into Reykjavik and drops them at their hotels.